Share deals caught out by relying on the Royal Mail
Share deals caught out by relying on the Royal Mail;Money letter
From THE TIMES, May 5th, 2001
From Dr Paul Clifford Sir, On February 6 this year I posted, using the
first-class mail, a share certificate to a stockbroker. As a result of its non-arrival by the settlement date of February 16,
I incurred a late settlement fee of Pounds 30 plus the need to obtain a letter
of indemnity from the registrars for the shares concerned. My original letter with the share certificate eventually arrived -20
days after it had been posted, and on the same day that the letter of
indemnity reached the stockbroker. I was then put to the extra trouble of having to get the stop removed
from the share certificate. The cheque for settlement was finally with me on
March 7. I explained all this to Royal Mail, supported by written evidence
from the stockbroker that my first-class letter had been date-stamped
appropriately. I was then told by Royal Mail that I cannot be compensated in any way
unless I had sent the letter by special delivery at a cost of Pounds 3.50 with
an additional Pounds 1.20 to cover consequential loss of a delayed letter. I suppose that I should now send share certificates, cheques for
settlement of shares bought and such like to stockbrokers in this way. The alternative is to brave an occasional late settlement fee of
Pounds 30 rather than pay around Pounds 5 for each letter posted. In fact, the former is the obvious strategy -you do not have to be a
mathematician to work out that safe delivery of more than six “important”
letters will negate the need for the special delivery service of Royal Mail. Sadly, Royal Mail bears no responsibility when it takes 20 days to
deliver a first-class letter. At least this serves as a cautionary tale for
those readers who think first-class postage is all that is needed if their
next letter to the stockbroker is to arrive on time. Yours faithfully, PAUL CLIFFORD, 1 Notting Hill Court, Belfast, BT9
5NH. (c) Times Newspapers Ltd, 2001THE TIMES, 05th May 2001
